European IP VPNs set for Rapid Growth: IDC

March 20, 2003 -- (FIND VPN) -- According to a study of IP VPNs in Western Europe released this week by research organization IDC (IDC.com), the number of do-it-yourself IP VPNs in the region is set to be overtaken by more complex outsourced IP VPN services.

The report predicts that the number of DIY IP VPN connections in Western Europe will grow at a compounded annual rate of 24 percent, from 0.5 million at the end of 2001 to nearly 1.5 million at the end of 2006. At the same time, says IDC, managed IP VPN connects will grow at a compounded annual rate of 51 percent of 51 percent, from 0.4 million at the end of 2001 to 3.2 million in 2006. The faster rate of growth, says IDC, will result in outsourced connections overtaking DIY implementations during 2003.

IDC says the predicted growth in managed IP VPN services is based on several factors, including growth in the prevalence, affordability and capabilities of managed service offerings. DIY IP VPNS, says IDC, will continue to have their place in key sectors of the market, particularly among companies with their own capable IT departments.

"As the market for IP VPN service provision becomes more competitive," says Chris Drake, senior analyst on IDC's European IP Services program, "service provider offerings will make greater use of a wide range of connectivity, management, and pricing options, as well as become more attractive in terms of the performance, quality of service, and value added services offered." Drake argues that "those service providers with the ability to offer flexible IP VPN solutions will have an advantage over those with limited connection, payment, and management options."